The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-12-14

surrounding circumstances of the legislation
that called the Taxing District into being
In all cases of doubt in the construction Of
statutes and of contracts resort 10 these
aids is warranted by the authorities.
In the first place the Taxing District is q
municipal corporation, ms has been settled
by the supreme court of Tennessee, and
which was quite clear before the adiudica-
ton. (Ieuhermann vs. Taxing District, .
Lea, I25
I'm the second place, municipal corIera-
ton is "a department of the State, "a Sub
ordinate branch OF the domestic government
oi the State, IAN fundamentally of the
state for the convenient administration of
government (gt L. =, $40; 10 Wallace
l75; SO L. s., llI) Municipal corporations
arc ordained by the Legislature for the local
government of particular localities. Their
rights and powers are conferred by charters,
which are their constitutions. A consttu-
ton is a body Of rules aud maxms for gov
eminent granting and limiting the powers
OF the state IL is not q code of laws, does
not embody details, but states general pre-
cepts These principles are well settled, so
that ordinarily constitutions OF both States
and municipal corporations are embraced
within narrow compass, and the powers
granted are embodied more or less in general
language. From the public
hlNlpkh OF THIS IEilSLATlON,
and from the pages Of the statute book We
find that the Taxing District became the sue
Cossor OF the city of Memphis. whose charter
was repealed ON the same day that the dis
trict was created From the same sources II
is well known that 10y administration and
extravaganza the old municipal corporation
had become overwhelmed by debit that its
creditors were pushing II relentlessly by
suits in the courts; that its resources in the
shape OF taxes stood uncollcctcd for
years, so that an enormous amount
of back taxes had accumulated. The
city had been blighted and dcsolated by pes
thence and the outlook was gloomy indeed.
The visitations Of pestilcnce were attributed
10 the unsanitary condition Of the city, and
the urgent demand for expensive and general
sanitary measures was manifest. The cfii-
cacy of quarantine regulations had been
demonstrated, aud these required the ox-
penditurc of money. Under these dark
| auspices, the Tnxing District had its birth.
Three principal causes had conspired 90
| destroy the corporation Of the city Of Mem
phis, tOwit: Maladministration and eXtrava-
glnce under the old form OF government; the
| failure 10 collect the taxes, so that many
hundreds OF thousands Of dollars Of back
taxes had accumulated; and the Aisitations
| Of pcstilcnCc. The Taxing District charter,
unique In is structure and extraordinary in
its provisions, was an emphatic protest
against the evils Of the old form ~ munich
pal government. The cardinal features Of
It's scope aud scheme were an avoidance Of
| these evils; an effort 20 escape the pressing
| demands of is creditors, and 10 provide san
itary reforms 10 cilectuatc these ends, IL
blended aud conferred In one officer cNccu-
tive, legislative and judicial functions; Il re-
served to the State the taxing power; IL de-
nounccd against It's officers the scverest pen
altics for maladministration Il prescribed
the s.rictest limitations Of their powers in
reference 10 the diversion Of taxes raised
and devoted tospeciiic purposes, and Il made
ample provisions for the needed sanitary re-
| forms.
THE STATUTE CONSTRUED.
In the light Of these facts, will now pro.
coed 10 construc the statute creating the Tax
| ing District, and adudicate the difficult
/ questions involved in the suit. II l. urged
| that the scheme Of tliis law was to establish
a government ON the cash basis, and In this
view concur IL y also claimed that the
| plan contemplated. that the commissioner,
should, by their reports 10 the Legislature
| fix the amount Of money needed each year
for the expenses Of the government, and that
/ when the Legislature levied the taxes Ia
meet these expenses Il was contemplated
that they would be collected, and the eX-
/ pcnscs for the year paid, 10 that az tho
/ end Of the year there would be perfect bal.
anco OF accounts, and the succeeding year
would he begun without debt or assets. To
| this theory IL may bc answered, that II IL Z.
| true, the scheme was utopian and impracti.
| cable hut this idea Is rciutcd when u Z.
remembered that the history Of the State
and of the old corporation demonstrated
| that q large proportion Of taxes assessed each
/ year became delinquent, and IN the very
statute that framed the District, provision r
/ made for the immense accumulation Of dcliu.
/ qucnt taxes due 10 the city IT Memphis "a
/ that Il must be assumed that The Lcgisln.
/ tnre contemplated the accumulation ~ back
/ taxes and, further ON, this circumstance
| will become important. The act does CON
/ tain the following provisions, that are relied
on by the complainant as decisive Of this
/ ease.
I'm no case shhll the fund collected Tor one
purpose be- used for any other, nor shall
| said commissioners issue any warrants un.
| lee. the money l. IN the hands of the trustee
/ at the time 10 redeem them, under the pen
| atty ofbcing personally liable Tor tho amount
recoverable by the holder 81 the warrant "
THAT the diversion n any portion II said
| taxes or wharfage dues of other fund from
| the purpose for which they were levied hy
any Of the commissioners or by the trustee
| shall be q felony etc. That said commits.
| doncu shall not issue any bonds. notes.
/ scrip or other evidence of Indebtedness, and
| shall IN M event contract Tor work or scry-
/ ices IN excess 81 tax levied for such work
/ material VI service for that year, and parties
| contracting with uid commissioners for
| work material or services shall look alone
| 90 the tax for that purpose for that year,
/ and no subsequent tax shall be levied 90
/ meet the deficit, and no property. real or
/ personal. held by srid commissioners Tor
/ public use shall ever b. subject Ia execution
| or attachment or seizure under any legal
/ process Tor any debt created by snid com.
/ missoncrs, etc."
In the same clause Of thc amended act
| that provides that "ln no cnsc shall the fund
| collected for one purpose be used for any
cccding two yean and tho budget are liked
| a. follows
Twenty cents on each 500 worth
OF taxable property 20 dciny the cx.
| pcnsos Of Tie police department. - cents
| on each 500 worth of taxable prop
/ orty 10 dcfmy tho expenses OF the fire depart.
/ mcut 10 cents on each 800 Of taxable prop
crty TO defray the expenses Of lighting streets
/ and public building. ~ cents on each 500
worth Of taxable property for the main
| tCuuncc 81 public schools; cents on each
/ 500 worth Of taxable property 10 dcfmy the
expenses u the hospitals Of the Taxing Dis.
/ trict; 80 cents on each 500 worth Of taxable
property Tor the repair aud paving Of the
/ streets and bridges and construction ~
sewers, drains and sanitary purpose etc"
Now, The question arises why the Lcgisa.
/ turc was 10 emphatic In IL provisions
/ that the taxes collected for one purpose
/ should not be used for any other aud why
/ u denounced such extreme penalties for n
/ violation Of this principle. Undoubtedly
the broad language employed embraced not
only the use Of funds for one municipal pur.
pose which had been collected for another
such purpose, but also the use Of such fundsfor
EXTRA MUNICIPAL PURPOSES.
The history, Of municipal corporations